Preparing for the SEC’s New Marketing Rule with Wayne Davis of Tannenbaum Helpern

Wayne Davis is the Chair of Tannenbaum Helpern's Investment Management Practice, Co-chair of Business and Finance, and a member of the Firm's Management Committee. Wayne’s practice focuses on advising clients with respect to the formation and ongoing operation of a broad range of private investment vehicles, minority, and majority asset manager acquisitions and dispositions, and “upper tier” management arrangements. He provides practical and business-oriented advice to U.S. and non-U.S domiciled venture capital, private equity and hedge funds, advisory firms, and family offices on all aspects of their business, including structuring, governing regulation, seed capital, and financing transactions, as well as the implementation of select investment strategies.

Go to podcast: Spotify iHeart Radio Amazon Apple Podcasts YouTube

“In the coming months, people should be completing their preparation for compliance with the new marketing rule [Rule 206(4)-1 under the Investment Advisers Act of 1940, as amended], which went into effect on May 4, 2021, with full compliance being mandatory as of November 4, 2022. The new rule consolidates the pre-existing advertising and cash solicitation rules into a single marketing rule. It also codifies many of the no-action letters and other guidance the SEC has published over the years. Addressing a broader scope of communications, the new marketing rule addresses not only adviser-generated advertisements but also includes statements by third parties, including testimonials and endorsements. In addition to written and certain oral communications, the new rule also explicitly applies to social media content.

Over the past year, we have been focusing our clients on the terms of the new rule and the need to ensure that existing policies and procedures are reviewed and updated as necessary. We also encourage the training of all relevant personnel. With respect to the new rule, our overriding goal is to ensure both that each client takes all steps required to be fully compliant and that any transition in business practice be as smooth and seamless as possible.”